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(Kitco News) - Comex gold futures prices ended the U.S. day session solidly higher Thursday. The precious metals saw strong support come from the key outside markets that were in a bullish posture Thursday—a sharply lower U.S. dollar index and higher crude oil prices. Both gold and silver bulls are working hard to confirm that last week’s lows were near-term market bottoms, and Thursday’s price action lent more credence to such. February gold last traded up $22.20 an ounce at $1,677.70. Spot gold was last quoted up $20.40 at $1,679.00. March Comex silver last traded up $0.651 at $30.90 an ounce.

Upbeat comments coming from European Central Bank President Mario Drahgi at his monthly press conference, regarding the European Union’s economic and financial prospects, put strong downside price pressure on the U.S. dollar and rallied the Euro currency Thursday. That, in turn, gave an added boost to the metals markets, which were already sporting modest gains earlier Thursday morning. A downbeat U.S. weekly jobless claims report issued Thursday morning also supported the metals and pressured the greenback.

In overnight news, European stock markets were supported and the Euro currency rallied following a successful Spanish bond auction that produced yields that were the lowest in almost a year. European traders were awaiting Thursday’s monthly European Central Bank meeting. The ECB did not make any major moves on interest rates, as expected. The Bank of England left its monetary policy unchanged at its meeting Thursday, as expected. There was more positive economic news coming out of China overnight. China’s trade surplus rose sharply in December, with exports rising more than expected. Asian stocks were boosted on that news. The China news Thursday was also a significantly bullish fundamental factor for the precious metals.

The U.S. dollar index was sharply lower Thursday as the bulls faded badly and lost their recent technical momentum. Meantime, Nymex crude oil futures prices are higher Thursday and hit a fresh three-month high. The crude oil bulls have upside near-term technical momentum. These two key “outside markets” are in a fully bullish posture for the precious metals Thursday, and will continue to impact the precious metals markets on a daily basis.

The London P.M. gold fixing was $1,675.00 versus the previous P.M. fixing of $1,657.75.

Technically, February gold futures prices closed near the session high Thursday. Heavy short covering and bargain hunting were seen. The gold bears still have the slight overall near-term technical advantage. A three-month-old downtrend is still in place on the daily bar chart. However, the bulls on Thursday did gain some fresh upside near-term technical momentum to begin to suggest that a market bottom is in place. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,695.40. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,626.00. First resistance is seen at $1,685.00 and then at $1,695.40. First support is seen at 1,666.00 and then at Thursday’s low of $1,653.80. Wyckoff’s Market Rating: 4.5

March silver futures prices closed near the session high Thursday. Heavy short covering and bargain hunting were seen. The silver bears still have the slight overall near-term technical advantage. However, the bulls have gained fresh upside technical momentum to suggest that a near-term market low is in place. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $31.535 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $29.24. First resistance is seen at $31.00 and then at $31.25. Next support is seen at $30.535 and then at Thursday’s low of $30.255. Wyckoff’s Market Rating: 4.5.

March N.Y. copper closed up 395 points at 371.00 cents Thursday. Prices closed near the session high. Copper was supported by bullish “outside market” forces that included a sharply lower U.S. dollar index and higher crude oil prices. Copper bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 375.90 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 365.00 cents. First resistance is seen at 372.10 cents and then at 375.00 cents. First support is seen at 370.00 cents and then at 367.50 cents. Wyckoff’s Market Rating: 6.5.

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